Kim Dong-yeon, deputy prime minister and finance minister
The South Korean government will disclose records of its currency operations biannually for the first year and then quarterly amid pressure from the United States and the International Monetary Fund, calling for more transparency in its foreign exchange policy.
Authorities will publish the net balance in foreign exchange transaction (gross purchase minus sale) on the Bank of Korea website.
The first report, which will contain currency operation records during the second half of this year, will be disclosed at the end of March next year. From the third report, it will be made on a quarterly basis starting December 2019.
“The exchange rate should be determined by the market but the government will continue to take stabilization measures upon signs of drastic tilting in the exchange rate,” the finance ministry said in a statement.
Seoul has been under constant pressure from the IMF and Washington to disclose details of its currency operations. The U.S. Treasury Department in its April currency exchange report placed Korea on the watch list and singled out Korea in calling for the need for more transparency in exchange rate policy.
“The disclosure will remove any unnecessary misunderstandings about Korea’s foreign currency operations and help build trust on our policies,” said the finance ministry in a statement. “Improved credibility about Korea’s foreign exchange policies will also make the market more stable.”
South Korea, the only member among the Organization for Economic Cooperation and Development that does not regularly publish foreign exchange transactions, resisted disclosure as the relatively small market is vulnerable to speculative forces.
On Thursday, Korean currency fell 3.6 won to 1,081.2 won against the U.S. dollar.
By Cho Si-young and Cho Jeehyun
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